Jobs report breakdown: US employers slash 92,000 jobs in February as healthcare, hospitality, construction, manufacturing, restaurants, factories and other sectors cut workers

US jobs report February 2026: The US labor market weakened in February as employers cut 92,000 jobs, according to data released by the Labor Department on Friday. The unemployment rate rose to 4.4%, signaling continued strain in the job market.

Jobs Report Today: Employers Cut 92,000 Jobs in February and Payroll Revisions Remove 69,000 Jobs From Previous Months

Economists had expected 60,000 new jobs during the month, making the losses a major surprise. The report also included revisions that removed 69,000 jobs from December and January payroll figures, adding to concerns about hiring trends, as per an AP report.

Jobs Report: Healthcare Sector Hit by Strike-Related Job Losses, Construction and Manufacturing Continue Workforce Cuts

Job losses were spread across several industries. Construction companies cut 11,000 jobs, and the healthcare sector lost 28,000 jobs, largely due to a four-week strike involving more than 30,000 nurses and frontline workers at Kaiser Permanente in California and Hawaii, as per the AP report. Healthcare had previously been one of the stronger areas of job growth.


Factories also reduced their workforce, cutting 12,000 jobs and continuing a longer trend in the industry. Manufacturing has now lost jobs in 14 of the past 15 months.

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Restaurants, Bars and Service Firms Report Significant Layoffs

Other sectors also reported notable layoffs. Restaurants and bars shed nearly 30,000 jobs, reflecting weakness in hospitality hiring.

Jobs Report: Courier and Administrative Services See Decline in Employment

Administrative and support services firms cut nearly 19,000 jobs, while courier and messenger services lost almost 17,000 roles, pointing to broader slowdowns in business and delivery-related services.

Financial Sector Adds Limited Jobs Despite Earlier Layoffs

While most sectors reported losses, financial firms added around 10,000 jobs in February. However, the report noted that the sector has still faced job cuts earlier in the year.

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Wages Rise Even as Hiring Slows Across Industries

Despite weaker hiring, average hourly wages increased 0.4% from January and 3.8% compared with a year earlier.

Iran Conflict and Rising Oil Prices Add Pressure on Businesses

The weak employment report comes as the war with Iran pushes oil prices higher, raising costs for businesses and consumers. Economists say the uncertainty is making companies more cautious about hiring.

Economists Warn Companies May Delay Hiring Decisions

Heather Long, chief economist at Navy Federal Credit Union, pointed out that, “The job market is struggling in the face of so many headwinds,” adding, “ Companies are going to be even more reluctant to hire this spring until the war ends and they can see consumers still spending. It’s a tense time for the U.S. economy," as quoted by AP.

Fed Faces Tough Choice Amid Weak Hiring and Rising Costs

The combination of slow hiring and rising inflation pressures from higher fuel costs also creates a difficult situation for the Federal Reserve as it considers whether to cut interest rates to support the job market or keep rates steady to control prices.

FAQs

Why did the US economy lose jobs in February?

The Labor Department reported that employers cut 92,000 jobs in February, with losses spread across multiple sectors.

What happened to the unemployment rate in February?

The unemployment rate rose to 4.4%, indicating increased pressure in the labor market.